At Ives & Co Solicitors, we regularly advise buyers and sellers navigating leasehold properties across the residential market. With leasehold reform back in the spotlight, many homeowners are asking the same question: which of these changes will genuinely make it easier to sell, buy, or refinance a leasehold property?
While reform headlines promise transformation, the reality is more nuanced. Some changes are likely to restore confidence quickly — others may take years to influence the market.
Why Leasehold Reform Matters Right Now
Leasehold homes — particularly flats — have faced growing challenges over recent years:
➡️ Buyers becoming cautious
➡️ Lenders tightening criteria
➡️ Delays and fall-throughs increasing
➡️ Sellers struggling to agree realistic prices
Much of this uncertainty stems from ground rents, lease lengths, and unpredictable costs, rather than the concept of leasehold itself.
The Change Most Likely To Unlock The Market: Ground Rent Caps
Among all proposed reforms, capping ground rents is widely seen as the most immediate market mover.
➡️ Ground rents would be limited to 0.1% of the freehold value
➡️ Escalating or doubling ground rent clauses would effectively disappear
➡️ Lender affordability concerns are reduced
This matters because mortgage approvals become more straightforward, valuations feel more stable, and buyers regain confidence in the long-term cost of ownership. In many stalled transactions, it is the ground rent terms — rather than the length of the lease — that ultimately determine whether a deal can move forward.
Abolition of Marriage Value: Helpful, But Slower Impact
Marriage value currently increases the cost of extending a lease once it falls below 80 years. Removing it sounds like a major win — and for leaseholders, it is.
However, its market impact may be slower.
✔ Lease extensions become more affordable
✔ Existing owners benefit financially
✔ Buyers still rely on lender policies
Until lenders fully adjust their risk models, this reform alone is unlikely to trigger a surge in transactions.
990-Year Lease Extensions: Confidence Over Cost
Extending leases to 990 years delivers clarity and reassurance, even if it doesn’t immediately change values.
➡️ Buyers feel secure
➡️ “Short lease” stigma disappears
➡️ Long-term resale prospects improve
This reform is particularly helpful in restoring buyer psychology, which plays a huge role in transactional momentum.
Fee Transparency And Cost Controls
Improved transparency around landlord and managing agent fees is another welcome reform — but it’s more about fairness than speed.
✔ Clearer service charge structures
✔ Fewer unexpected costs
✔ Reduced disputes post-completion
While these changes improve the experience of owning a leasehold property, they are unlikely on their own to drive higher transaction volumes.
What This Means For Buyers And Sellers
Leasehold reform is not a single switch that instantly “fixes” the market. Instead, momentum builds when:
✅ Lenders feel confident
✅ Buyers understand future costs
✅ Sellers can price realistically
✅ Transactions proceed with fewer surprises
Ground rent reform appears best placed to deliver that confidence first, with other changes strengthening the market over time.
Key Takeaways For Leasehold Transactions
Ground rent caps are likely to be the most commercially impactful reform, as they directly address lender concerns and affordability issues that have slowed many leasehold transactions. Alongside this, reforms to lease lengths help build long-term confidence by removing the uncertainty associated with short leases and future extension costs. Improved transparency around fees and charges further strengthens the buyer experience, reducing the risk of unexpected costs and disputes after completion. Taken together, these measures show that no single change works in isolation, and that understanding how reform interacts with mortgage lending and buyer behaviour is now essential when buying or selling a leasehold property.
